Investigation Identifies Major Discrepancy in Jeremy Durham Campaign Finance Account

In a memo issued last week, state investigators indicated major discrepancies in the campaign account of embattled State Rep. Jeremy Durham (R - Franklin).

The Tennessee Registry of Election Finance said in an Aug. 10 memo that Durham's campaign bank account balance on Mar. 31 was $6,856.71, but the lawmaker reported a balance of $198,253.98 on his required June 6 disclosure to the state.

“At this time a determination cannot be made as to the accuracy of Rep. Durham’s campaign balance due to investments, failure to report contributions and other transactions,” the memo reads, in part.

Among the numerous discrepancies outlined in the memo are numerous "investments" made out of the campaign account:

• Investing campaign and political action committee funds, along with his personal money, in a company identified only as "Company A."
• Creating a $30,000 line of credit for himself from his campaign account. The state says Durham received $25,000 and has paid back $15,000, but there's no record Durham paid any interest, despite an agreement saying he would pay 2.5 percent.
• A $29,800 loan from the campaign to a person identified as “individual B.” An unsigned promissory note set up an arrangement whereby "individual B" would be paid $23,800 plus 10 percent interest if the loan was not paid back by Feb. 1. Ultimately, the campaign wrote three checks totaling $29,800 to "individual B" but there is no record of any repayment.
• In December 2014, Durham’s campaign sent a $10,000 check to "company C" as an "investment," but there is no documentation for the investment.

The memo also says Durham received roughly $10,000 in unitemized contributions (those of $100 or less) that "appear to have not been reported." There is also no record of a blank check for $7,500 that was cashed in January.

The investigation began when Benton Smith, a former assistant to Durham, said he was told by the legislator to take $2,000 from the campaign and deposit the money into the account of Durham’s private title company, Battleground Title and Escrow. Durham has repeatedly denied the allegation and repeatedly refused to provide records refuting it.

Tom Lawless, a Nashville attorney who chairs the Registry of Election Finance board, told The Tennessean "There are indications there may be some serious violations."

This is the latest trouble in Durham's annus horribilis, in which an investigation found improper conduct with at least 22 women during his time on Capitol Hill and his defeat in the Republican primary. There have been initial moves to oust him from the General Assembly, even in his now-lame-duck status, which would deny him his pension.